Many people think that inheritance tax (IHT) is only of relevance to very wealthy individuals. This is not necessarily the case as more and more people own their home. Property prices are now rising again and so, therefore, is the size of a person’s estate. Individual’s financial circumstances can change dramatically over the years particularly those with business interests.
At present, the first £325,000 (the Nil Rate Band) is taxed at 0% with the balance at 40%. This will increase to £500,000 by 2020 for those leaving their home to direct descendants. There is also a full exemption for assets passing to a spouse or a charity.
Oracle Law can advise if you are likely to incur any IHT liability and on the best way to mitigate any future tax liabilities. We have been helping clients for many years to manage their assets in the most tax efficient way and we can offer advice on the following:
Of course, estate planning is much more than simply mitigating inheritance tax. It encompasses succession planning for your personal affairs where you may wish to make additional provision for a young person or vulnerable adult. It is also very important if you have an interest in a business. Many family businesses encounter problems when it comes to succession within the family. Business owners may find that their spouse has no interest in a family business while others may find that some of their children wish to pursue other interests. There is an obvious difficulty in the equal distribution of an estate in these circumstances whilst allowing the business to survive and prosper.
Estate planning for the future and mitigating current and future tax liabilities is always a sensible idea. Please contact us for further information or complete our Estate Planning Questionnaire and we will contact you.